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US spying allegations intensify amid German anger

TONY EASTLEY: Angela Merkel is famously fond of her mobile telephone and the German chancellor is said to be still livid about claims US intelligence agencies monitored her use of it.

A report in Britain's Guardian newspaper says the German leader is just one of dozens of world leaders whose phone calls were monitored.

The issue of US surveillance is overshadowing a meeting of European Union (EU) leaders in Brussels.

Europe correspondent Barbara Miller reports.

BARBARA MILLER: It's not known whether Angela Merkel used her mobile phone or a landline to personally call president Barack Obama about reports the US had been bugging her communications, but there's no doubting the sentiment behind the call.

Arriving at an EU summit in Brussels, the woman nicknamed the mobile phone chancellor repeated in the starkest terms her feelings about the allegations.

(Sound of Angela Merkel speaking)

ANGELA MERKEL (translated): I have made it clear to the president of the United States that spying on friends is not acceptable at all. I said that when he was in Berlin in July and also yesterday in a telephone call. We have to have trust in our allies and partners and this trust must now be established once again.

BARBARA MILLER: Much is being made of the fact that the White House could only confirm that Angela Merkel's phone was not now and would not in the future be bugged, a line repeated in the latest White House briefing.

Spokesman Jay Carney:

JAY CARNEY: As I mentioned yesterday, the president spoke with chancellor Merkel, reassured her that the United States is not and will not monitor the chancellor's communications.

We have also said broadly that at the president's direction we are reviewing the way that we gather intelligence to ensure that we properly balance the security concerns of our citizens and allies with the privacy concerns that all people share.

BARBARA MILLER: Germany is the latest in a string of countries to directly express anger at the US over the alleged extent of its surveillance programs.

A report in the Guardian newspaper is set to add to the tensions. It suggests the NSA (National Security Agency) monitored the phone calls of 35 world leaders. The Guardian says the information is based on a document provided by the former US intelligence contractor Edward Snowden.

The uproar comes just as the EU and US are trying to negotiate a free trade deal.

Peter Neumann is Professor of Security Studies at King's College London:

PETER NEUMANN: The language she was using today and her government was using was very harsh, bordering on the almost undiplomatic.

She sees it as a personal betrayal. It's almost like having your best friend read your email secretly and listen in to your phone calls, suddenly realise and you're very, very angry.

BARBARA MILLER: Will it have an impact on EU/US trade talks?

PETER NEUMANN: I think ultimately the talks will continue because Merkel wants them and right of centre leaders in Europe want them, but there may be a slowdown for a number of weeks.

BARBARA MILLER: The EU summit is supposed to focus on economic and social policies, as well as ways of responding to the influx of migrants from Africa in the wake of the recent Lampedusa tragedy. But it's what happening on the sidelines that's truly inflaming passions.

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